Thompson

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Tank-automotive & Armaments COMmand

Tactical Wheeled Vehicle Conference

Future of Tactical Wheeled Vehicles in the U.S. Army

3 February 2004

February 2004

MG N. Ross Thompson III Commanding Committed to Excellence – Supporting America’s Warfighters

1

Are We Out of Balance?

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Current Readiness

Future Readiness

• SSTS funding shortfalls inhibit fleet efficiency upgrades • Aging systems consume ever increasing amounts of OMA resources • Pressing the current systems into new missions increases sustainment      requirements     February 2004

Committed to Excellence – Supporting America’s Warfighters

2

Systems Transition What Should Happen

Sustainment Support

Post-production OMA

Hardware Production

$

Software Support Hardware Support

What Did Happen In-production PA

Transformation

Transformation

In-production PA

Hardware Production

$

PPSS

$ SSTS

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Sustainment Support

Post-production OMA

Expect Significant Readiness Decline with Rising O&S Costs

Software Support Hardware Support

SSTS PPSS UFR

System Transitions Accelerated to Support Transformation February 2004

Committed to Excellence – Supporting America’s Warfighters

3

AWCF (SMA) SPARE PARTS UPDATE FY04 Overview ($’s in Billions)

SALES 4.5

Sales as of 26 JAN 04: $1.078

4 3.5 3 2.5 2 1.5 1 0.5 0

FY02

FY03

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

3.027

Obligations as of 26 JAN 04: $1.709

FY02

Reset

SEP

Conops

2.413 3.404 0.323 0.569 0.882

ACTUALS

3.5 3 2.5 2 1.5 1 0.5 0

Leadership Teaming Communication FY04 Requirement is only Employee Support 64% funded. Strategic Thinking UFR = $.973 Organizational Climat

1.198

FY03

FY04

0.409

0.689

0.343

0.371

2.275

1.636

Revised Forecast

0.323 0.599 0.929 1.237 1.576 1.931 2.282 2.634 2.967 3.293 3.709 4.111

Sustainment

MTHLY ACT

0.323 0.246 0.313

DA Mark

0.238 0.446 0.642 0.882 1.092 1.343 1.606 1.864 2.114 2.383 2.678 2.963

Available

2.615

TACOM Submission

0.256 0.483 0.687 0.945 1.211 1.492 1.776 2.029 2.274 2.535 2.827

UFR

0.412

3.08

2.696

*

1.723 0.973

* Includes OMA spares augmentation

Supply Availability/Operational Readiness (SA/OR)

FY02 FY03 FY04

Overall SA (Goal 85%) 87.7% 80.0% 71.9%

February 2004

84% 90% 94% 84%

Unfilled orders as of 26 JAN 04: Total: $.9121

OIF SA 1

86.1% 74.0%

0.75 0.5

Key Systems OR Rates as of Dec 03: M1A1 M1A2 M198 HOW HEMMTT

BACKORDER $

1.25

BFVS HMMWV M109

84%

0.25

91% 88%

0

SEP 00

SEP 01

SEP 02

OCT 02

NOV 02

DEC 02

JAN 03

FEB 03

T OT AL DOLLARS 0.215 0.309 0.393 0.469 0.502

0.62

0.632

0.7

MAR 03

APR MAY 03 03

JUN 03

JUL 03

AUG 03

SEP 03

OCT 03

NOV 03

DEC 03

0.683 0.701 0.769 0.876 0.765 0.821 0.888 0.971 1.014 0.989

Committed to Excellence – Supporting America’s Warfighters

4

Product Lifecycle Management (PLM) Defined

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Product Lifecycle Management (PLM) is an integrated, information-driven approach to all aspects of a product's life, from its (conceptual) design through manufacture, deployment and maintenance—culminating in the product's removal from service and final disposal. PLM software suites enable accessing, updating, manipulating and reasoning about product information that is being produced in a fragmented and distributed environment. Another definition of PLM is the integration of business systems to manage a product's life cycle.

SOURCES: UNIVERSITY OF MICHIGAN PLM DEVELOPMENT CONSORTIUM, ARC ADVISORY GROUP Stackpole, B. (2003, May 15, 2003). There's a New App in Town. CIO.

February 2004

Committed to Excellence – Supporting America’s Warfighters

5

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Product Lifecycle Management (PLM) Users of Product Data in DOD Acquisition RDECOM

TRADOC A

CR

PEO/PM C

B

TD

Product line managing command

SDD

Collaborative Environment (PDM-based Army ACE) Knowledge Creation and Management

PD

OS Transactional Environment (SAP-based SALE) Derived Data Manipulation

 These organizations generate, access or use weapon system product data to perform their mission. They require access to the same data on the same enterprise system! –

– –

Stored Once (use many times): any single piece of data should be stored only once. This would eliminate synchronization problems, multiple sets of operating costs, and enable common responses to queries regardless of geography, product or role. Controlled Access: define ways to access data rather than have data. Portable Authority: move the key, not the vault. Currently we move the data from vault to vault, contractor to government, and development to readiness. Every move introduces costs and content errors.

Need an enterprise best of breed solution based on 3D solid models as the primary product data February 2004

Committed to Excellence – Supporting America’s Warfighters

6

The GM Math Pipeline

Computer Aided Design Tools

Design Tools

Simulation & Analysis Tools

Computer Aided Engineering Tools

Computer Aided Testing Tools

Visualization Tools

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Manufacturing Tools

Mfg Engineering Tools

Product Data Manager GM Math Pipeline

High Performance Computers High Speed Data Network

February 2004

Committed to Excellence – Supporting America’s Warfighters

7

Interactive Electronic Technical Manuals (IETMs)

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

 Key enabler for Common Logistics Operating Environment (CLOE) – Support single common test hardware and software – Support uniform interface with GCSS-A/Enterprise Resource Planning (ERP) System  Integrate Current system support with Future system requirements on the same battlefield  Life-cycle data management – Support data reuse, single source of data – Provide logistics info tailored to a specific model of vehicle  Funding of IETMs for the current force will: – Leverage current diagnostic capabilities – Ensure DoD network interoperability – Incentivize PM investment for IETMs and embedded diagnostics Expert help to the maintainer means: • Increased readiness • Greater vehicle availability • More effective and safer fighting force February 2004

Committed to Excellence – Supporting America’s Warfighters

8

Uni que Identif icati on (UID) Ma rki ng

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 Policy outlined in 29 Jul 03 Under Secretary memo & DFARS Interim Rules  Uniquely identified (UID) items will facilitate item tracking and provide reliable data for management purposes.  We’ve implemented new DFARS UID clause in all supply solicitations per 1 Jan 04 mandate  LMP (AMC), BSM (DLA), and other logistics systems are not aligned to support a standard UID at this time. UID is key to Fixing DOD’s Distribution Process February 2004

Committed to Excellence – Supporting America’s Warfighters

9

Enterpri se Ex cel lence in TACO M

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 TACOM’s manufacturing and service product lines undergoing Lean (and soon Lean / Six Sigma)  Manufacturing: over 30 value streams “leaned” since FY03 – Resulting in 30-40% increases in output and productivity – Approximately $15M in cost avoidance / savings projections (combined GSIE depots and arsenals)

 Service: Over 20 value steams “leaned” since April 03 – Expect to see up to 50% increases in process flow time and reduced hours required to perform work

 Will apply enterprise excellence tools to all manufacturing and service lines by end of FY05  Standing up Enterprise Excellence Federation by Feb 04.

February 2004

Committed to Excellence – Supporting America’s Warfighters

10

Total Lifecycle Support Requires Technical Data

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat



Acquisition Strategy should consider Total Life Cycle Support Requirements



Sustainment of Weapon Systems is a Major Life Cycle Cost Driver



Consider both Organic and Contractor Support for Sustainment Support



Recognize the Need for RECAP, REBUILD, RESET Requirements and Obsolescence Issues



Optimize for Least Cost to Total Army / DoD Support System



DoD 5000.2 – Data Management guidance is open ended



Acquire Access or Rights for Technical Data when you have the Most Leverage



AMC has Sustainment Responsibility (including Tech Data Management) for Army Ground Systems

• Technical Data has lifecycle requirements that are best addressed early • 80% Solution needs to be thought out while in the initial program phase February 2004

Committed to Excellence – Supporting America’s Warfighters

11

The U.S. Army

Tank-automotive and Armaments Command

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Committed To Excellence... February 2004

Committed to Excellence – Supporting America’s Warfighters

12

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

Back Up

February 2004

Committed to Excellence – Supporting America’s Warfighters

13

Five Po int s for a Gr ea t Ma int en an ce Pr ogr am

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

 Assigned operators / assistant operators / supervisors.  Initial and recurring certification of STAMIS operators and supervisors.  Quality PMCS.  Quality services and repair processes.  Licensing program for operators on all equipment.

Leadership and command emphasis are needed for all five to work.

These points help to train soldiers and grow leaders.

February 2004

Committed to Excellence – Supporting America’s Warfighters

14

CY02 TA COM Offsi te Co nference Data

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat

 Total conferences attended - 414  Total attendees - 2,080  $ 831,600

Travel cost

 $ 735,255

Registration fees

 $ 322,135

Per diem cost

 $

90,097

Materials and supplies cost

 $1,979,087

Total direct conference cost

 $1,588,654

Lost productivity cost

 $3,567,741

Total cost to attend conferences

February 2004

Committed to Excellence – Supporting America’s Warfighters

15

Pri nci ple s for HMMWV Recap

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climat



Develop SOW to optimize the system within available funding (# of systems X cost per system = available $).



Organic Base Partnering – –

With Industry With other Organic Base Entities, e.g. LEAD – RRAD



Develop data requirements for next generation equipment.



Leverage RDEC engineering directorates and industry to upgrade the fleet.



Incorporate Unique Identification (UID) requirements in the strategy.



Enterprise Excellence Tools used throughout the program (Operating System, Voice of Customer, LEAN, SIX Sigma). – –



Maintenance/Overhaul Suppliers (DLA, Industry, AMC IMMCs)

Program execution/assessment reviews quarterly. – – –

Baseline program at start Cost, schedule and quality are the key metrics Reviews conducted and compared to baseline



Future annual workload decision based on actual performance to date.



Cost savings/avoidance shared with the customer – joint decision.



Goal = competitive business environment over the life of the system.

February 2004

Committed to Excellence – Supporting America’s Warfighters

16